AB371 - Enacts the Cosmetology Licensure Compact. (BDR 54-835)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 1) A.B. 371 - *AB371* ASSEMBLY BILL NO. 371–ASSEMBLYMEMBER TORRES-FOSSETT MARCH 6, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Enacts the Cosmetology Licensure Compact. (BDR 54-835) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to cosmetology; enacting the Cosmetology Licensure Compact; providing cosmetologists practicing in this State under the Compact with the same legal status as persons who are licensed cosmetologists in this State; authorizing the sharing of certain information with a data system created by the Compact; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of cosmetologists in this 1 State by the State Board of Cosmetology. (Chapter 644A of NRS) Section 1 of this 2 bill enacts the Cosmetology Licensure Compact, which allows a person who is 3 licensed as a cosmetologist in a state which is a member of the Compact to obtain a 4 multistate license which authorizes the person to practice in other states that are 5 members of the Compact. 6 In order to obtain a multistate license authorizing a person to practice as a 7 cosmetologist under the Compact, the Compact requires a person to: (1) hold an 8 unencumbered license in a State that is a member of the Compact and which is the 9 primary residence of the person; (2) submit to an application process and pay any 10 applicable fees; (3) agree to abide by the rules of the State Board of Cosmetology 11 or other licensing authority in each state in which he or she seeks to practice; (4) 12 function within the scope of practice authorized by each state in which he or she 13 seeks to practice; and (5) meet certain other requirements for eligibility. 14 The Compact requires member states to create a joint government agency 15 called the Cosmetology Licensure Compact Commission. The Compact sets forth 16 the powers of the Commission which include, among other powers, the power to 17 adopt rules and bylaws and to hold meetings, which may be closed under certain 18 circumstances. The Compact additionally authorizes the Commission to levy and 19 collect an annual assessment from member states and impose fees upon persons 20 seeking to practice under the Compact to cover the cost of its operations. 21 – 2 – - *AB371* The Compact requires the Commission to create a data system to facilitate the 22 sharing of information among member states. Section 2 of this bill, in general, 23 authorizes the State Board of Cosmetology to disclose information to that data 24 system when required by the Compact. Section 4 of this bill provides for the 25 confidentiality of certain information disclosed through the data system. 26 The Compact provides additional provisions to carry out the Compact, 27 including providing procedures for the taking of adverse actions against licensees, 28 provisions for rulemaking by the Commission, procedures for oversight, dispute 29 resolution and enforcement and procedures for amendments and withdrawals. 30 Section 3 of this bill deems practicing as a cosmetologist under the Compact to 31 be equivalent to practicing under a license issued by the State Board of 32 Cosmetology, thereby providing such persons with the same authority, duties and 33 legal protections as a licensee. 34 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 644A of NRS is hereby amended by 1 adding thereto a new section to read as follows: 2 The Cosmetology Licensure Compact is hereby ratified and 3 entered into with all other jurisdictions legally joining the 4 Compact, in substantially the form set forth in this section: 5 6 COSMETOLOGY LICENSURE COMPACT 7 8 ARTICLE 1. PURPOSE 9 10 The purpose of this Compact is to facilitate the interstate 11 practice and regulation of Cosmetology with the goal of improving 12 public access to, and the safety of, Cosmetology Services and 13 reducing unnecessary burdens related to Cosmetology licensure. 14 Through this Compact, the Member States seek to establish a 15 regulatory framework which provides for a new multistate 16 licensing program. Through this new licensing program, the 17 Member States seek to provide increased value and mobility to 18 licensed Cosmetologists in the Member States, while ensuring the 19 provision of safe, effective, and reliable services to the public. 20 This Compact is designed to achieve the following objectives, 21 and the Member States hereby ratify the same intentions by 22 subscribing hereto: 23 A. Provide opportunities for interstate practice by 24 Cosmetologists who meet uniform requirements for multistate 25 licensure; 26 B. Enhance the abilities of Member States to protect public 27 health and safety, and prevent fraud and unlicensed activity within 28 the profession; 29 – 3 – - *AB371* C. Ensure and encourage cooperation between Member 1 States in the licensure and regulation of the Practice of 2 Cosmetology; 3 D. Support relocating military members and their spouses; 4 E. Facilitate the exchange of information between Member 5 States related to the licensure, investigation, and discipline of the 6 Practice of Cosmetology; and 7 F. Provide for the licensure and mobility of the workforce in 8 the profession, while addressing the shortage of workers and 9 lessening the associated burdens on the Member States. 10 11 ARTICLE 2. DEFINITIONS 12 13 As used in this Compact, and except as otherwise provided, the 14 following definitions shall govern the terms herein: 15 A. “Active Military Member” means any person with full- 16 time duty status in the armed forces of the United States, including 17 members of the National Guard and Reserve. 18 B. “Adverse Action” means any administrative, civil, 19 equitable, or criminal action permitted by a Member State’s laws 20 which is imposed by a State Licensing Authority or other 21 regulatory body against a Cosmetologist, including actions against 22 an individual’s license or Authorization to Practice such as 23 revocation, suspension, probation, monitoring of the Licensee, 24 limitation of the Licensee’s practice, or any other Encumbrance 25 on a license affecting an individual’s ability to participate in the 26 Cosmetology industry, including the issuance of a cease and desist 27 order. 28 C. “Authorization to Practice” means a legal authorization 29 associated with a Multistate License permitting the Practice of 30 Cosmetology in that Remote State, which shall be subject to the 31 enforcement jurisdiction of the State Licensing Authority in that 32 Remote State. 33 D. “Alternative Program” means a non-disciplinary 34 monitoring or prosecutorial diversion program approved by a 35 Member State’s State Licensing Authority. 36 E. “Background Check” means the submission of 37 information for an applicant for the purpose of obtaining that 38 applicant’s criminal history record information, as further defined 39 in 28 C.F.R. § 20.3(d), from the Federal Bureau of Investigation 40 and the agency responsible for retaining State criminal or 41 disciplinary history in the applicant’s Home State. 42 F. “Charter Member State” means Member States who have 43 enacted legislation to adopt this Compact where such legislation 44 predates the effective date of this Compact as defined in Article 13. 45 – 4 – - *AB371* G. “Commission” means the government agency whose 1 membership consists of all States that have enacted this Compact, 2 which is known as the Cosmetology Licensure Compact 3 Commission, as defined in Article 9, and which shall operate as an 4 instrumentality of the Member States. 5 H. “Cosmetologist” means an individual licensed in their 6 Home State to practice Cosmetology. 7 I. “Cosmetology”, “Cosmetology Services”, and the “Practice 8 of Cosmetology” mean the care and services provided by a 9 Cosmetologist as set forth in the Member State’s statutes and 10 regulations in the State where the services are being provided. 11 J. “Current Significant Investigative Information” means: 12 1. Investigative Information that a State Licensing 13 Authority, after an inquiry or investigation that complies with a 14 Member State’s due process requirements, has reason to believe is 15 not groundless and, if proved true, would indicate a violation of 16 that State’s laws regarding fraud or the Practice of Cosmetology; 17 or 18 2. Investigative Information that indicates that a Licensee 19 has engaged in fraud or represents an immediate threat to public 20 health and safety, regardless of whether the Licensee has been 21 notified and had an opportunity to respond. 22 K. “Data System” means a repository of information about 23 Licensees, including, but not limited to, license status, 24 Investigative Information, and Adverse Actions. 25 L. “Disqualifying Event” means any event which shall 26 disqualify an individual from holding a Multistate License under 27 this Compact, which the Commission may by Rule or order 28 specify. 29 M. “Encumbered License” means a license in which an 30 Adverse Action restricts the Practice of Cosmetology by a 31 Licensee, or where said Adverse Action has been reported to the 32 Commission. 33 N. “Encumbrance” means a revocation or suspension of, or 34 any limitation on, the full and unrestricted Practice of 35 Cosmetology by a State Licensing Authority. 36 O. “Executive Committee” means a group of delegates 37 elected or appointed to act on behalf of, and within the powers 38 granted to them by, the Commission. 39 P. “Home State” means the Member State which is a 40 Licensee’s primary State of residence, and where that Licensee 41 holds an active and unencumbered license to practice 42 Cosmetology. 43 – 5 – - *AB371* Q. “Investigative Information” means information, records, 1 or documents received or generated by a State Licensing Authority 2 pursuant to an investigation or other inquiry. 3 R. “Jurisprudence Requirement” means the assessment of an 4 individual’s knowledge of the laws and rules governing the 5 Practice of Cosmetology in a State. 6 S. “Licensee” means an individual who currently holds a 7 license from a Member State to practice as a Cosmetologist. 8 T. “Member State” means any State that has adopted this 9 Compact. 10 U. “Multistate License” means a license issued by and 11 subject to the enforcement jurisdiction of the State Licensing 12 Authority in a Licensee’s Home State, which authorizes the 13 Practice of Cosmetology in Member States and includes 14 Authorizations to Practice Cosmetology in all Remote States 15 pursuant to this Compact. 16 V. “Remote State” means any Member State, other than the 17 Licensee’s Home State. 18 W. “Rule” means any rule or regulation promulgated by the 19 Commission under this Compact which has the force of law. 20 X. “Single-State License” means a Cosmetology license 21 issued by a Member State that authorizes practice of Cosmetology 22 only within the issuing State and does not include any 23 authorization outside of the issuing State. 24 Y. “State” means a State, territory, or possession of the 25 United States and the District of Columbia. 26 Z. “State Licensing Authority” means a Member State’s 27 regulatory body responsible for issuing Cosmetology licenses or 28 otherwise overseeing the Practice of Cosmetology in that State. 29 30 ARTICLE 3. MEMBER STATE REQUIREMENTS 31 32 A. To be eligible to join this Compact, and to maintain 33 eligibility as a Member State, a State must: 34 1. License and regulate Cosmetology; 35 2. Have a mechanism or entity in place to receive and 36 investigate complaints about Licensees practicing in that State; 37 3. Require that Licensees within the State pass a 38 Cosmetology competency examination prior to being licensed to 39 provide Cosmetology Services to the public in that State; 40 4. Require that Licensees satisfy educational or training 41 requirements in Cosmetology prior to being licensed to provide 42 Cosmetology Services to the public in that State; 43 5. Implement procedures for considering one or more of 44 the following categories of information from applicants for 45 – 6 – - *AB371* licensure: criminal history; disciplinary history; or Background 1 Check. Such procedures may include the submission of 2 information by applicants for the purpose of obtaining an 3 applicant’s Background Check as defined herein; 4 6. Participate in the Data System, including through the 5 use of unique identifying numbers; 6 7. Share information related to Adverse Actions with the 7 Commission and other Member States, both through the Data 8 System and otherwise; 9 8. Notify the Commission and other Member States, in 10 compliance with the terms of the Compact and Rules of the 11 Commission, of the existence of Investigative Information or 12 Current Significant Investigative Information in the State’s 13 possession regarding a Licensee practicing in that State; 14 9. Comply with such Rules as may be enacted by the 15 Commission to administer the Compact; and 16 10. Accept Licensees from other Member States as 17 established herein. 18 B. Member States may charge a fee for granting a license to 19 practice Cosmetology. 20 C. Individuals not residing in a Member State shall continue 21 to be able to apply for a Member State’s Single-State License as 22 provided under the laws of each Member State. However, the 23 Single-State License granted to these individuals shall not be 24 recognized as granting a Multistate License to provide services in 25 any other Member State. 26 D. Nothing in this Compact shall affect the requirements 27 established by a Member State for the issuance of a Single-State 28 License. 29 E. A Multistate License issued to a Licensee by a Home State 30 to a resident of that State shall be recognized by each Member 31 State as authorizing a Licensee to practice Cosmetology in each 32 Member State. 33 F. At no point shall the Commission have the power to define 34 the educational or professional requirements for a [Text truncated for display. Full text available on LegiScan.]